The average buyer usually doesn’t put down all cash to purchase a house.   They will usually take out a mortgage loan.   As a buyer, you should be familiar with the different mortgage options; conventional, FHA, or VA.

Conventional – A loan that is not guaranteed or insured by the federal government.  Thus, the lender bears more risk and generally has higher standards for qualification.   Usually, a conventional loan is a 30-year fixed rate mortgage.  That means it has a fixed interest rate for the 30 year term of the loan.  Conventional loans also typically require at least a 20 percent down payment. 

FHA-  A loan that is insured by the Federal Housing Administration (FHA). The program is available to home buyers who meet certain qualifications / guidelines.    For FHA loans, there is usually an easier qualification process for borrowers, a lower down payment required, and for those with lower credit scores, a greater chance of qualifying for the loan.

VA- A loan that is partially guaranteed by the Department of Veterans Affairs (VA).  Only veterans, surviving spouses, and active military personal may apply for a VA loan.